Lynn Bolin

South Africa’s latest Medium-Term Budget Policy Statement, outlined by Finance Minister Trevor Manuel on Wednesday, combines real increases in spending of 9,7% in the current 2006/07 financial year and 7% real average spending rises in each of the next three years, with almost perfectly balanced budgets in all four years.

South African Minister of Finance Trevor Manuel has revised upward by R29,6-billion the government’s projected revenue collections for the 2006/07 financial year. The sharp increase — to R486,4-billion from R456,8-billion estimated in February’s national budget — was attributable largely to higher-than-expected collections in corporate and individual income tax.

Sanlam, South Africa’s second-largest life insurer, has confirmed it is examining a possible acquisition of the United Kingdom life insurance business of General Electric (GE) as one of several opportunities for enhancing its capital efficiency. In a statement on Monday, Sanlam said, however, that its evaluation of the GE business was at an "embryonic stage".

The average price of wines sold at the 32nd Nederburg Auction over the weekend fell 25% from those attained in 2005, with the market experiencing a correction after having soared 90% last year. The 2006 auction, which returned to a two-day format and offered more wine versus 2005, also saw the return to prominence of supermarkets amongst the buyers.

The South African wine industry marked a milestone on Wednesday with the launch of Women in Wine, the country’s first wine producing company that is owned, controlled and managed by women, during the second day of Cape Wine 2006, the industry’s bi-annual international trade exhibition.

There could be "inflationary consequences" for South Africa if economic growth was higher than the annual 4,5% rate shown by research to be the country’s potential output rate, according to South African Reserve Bank (SARB) governor Tito Mboweni.

Building costs as measured by the cost to the client (including building materials, labour, fuel and contractor profit-margin) have risen by about 85% in the past six years, driven by the rising momentum in activity in the building and construction industry over the period. This rise was far beyond the overall pace of inflation in the economy.

SABMiller, one of the world’s largest brewers, has received permission from the Slovak competition authority to acquire Slovakia’s third-largest brewery, Topvar, in a deal worth an estimated value of $15-million (as measured by net-asset value). SABMiller confirmed this to I-Net Bridge on Tuesday

Retail-sales data for December released earlier on Wednesday by Statistics South Africa (Stats SA) show that growth in sales over the Christmas spending season was "phenomenal", and the spending spree is likely to continue, according to Standard Bank.

Old Mutual South Africa, the South African subsidiary of listed insurance and financial-services group Old Mutual, has seen its operating profit grow by only 2% in 2005 due to only modest 2% growth in its life-assurance profits and a 13% reduction long-term investment return.

Listed South African fashion retailer Truworths International has reported a 33% increase in its fully diluted headline earnings per share for the 26 weeks to the end of December 2005, to 90,4 cents from 68 cents in the year-earlier period. The company declared an interim dividend of 44 cents per share.

Mr Price Home, the furniture, homeware and home decor chain of stores owned by listed retailer Mr Price Group, has reached the R1-billion mark in annual sales after only seven years of operations, the company announced on Tuesday. "This is an important milestone for Mr Price Home," said CEO Alastair McArthur.

The CEO of Swedish financial-services group Skandia, Hans-Erik Andersson, faced with the recent success of Old Mutual’s R38-billion takeover of the company, has emphasised Skandia’s improved operations and his belief in the soundness of its current business model in his comments regarding Skandia’s 2005 annual results on Tuesday.

De Beers, the world’s largest diamond producer that is 45% owned by mining giant Anglo American, posted record diamond production of 49-million carats in 2005, according to newly appointed group MD Gareth Penny. De Beers is set to unveil its 2005 annual results on Friday.

Gold-mining group Gold Fields is looking at acquisitions of international assets in much higher-risk areas than previously considered in order to meet its target of a 50/50 production split between South Africa and the rest of the world by 2009, according to CEO Ian Cockerill.

In recent times, the rand has strengthened to "way beyond desirable levels", according to South African Deputy President Phumzile Mlambo-Ngcuka. Addressing the media in Parliament on Monday, Mlambo-Ngcuka said the country’s recent growth, although welcome, has been "unbalanced".

After months of running on a skeleton crew, the Cape Town clothing factory owned by listed manufacturer Rex Trueform officially reopened on Wednesday under a new five-year lease agreement with House of Monatic, a wholly owned subsidiary of black economic empowerment group Brimstone Investment Corporation.

London- and South Africa-listed financial-services group Old Mutual is currently counting acceptances received from shareholders of Swedish insurer Skandia for its R38-billion offer for the company, which closed at midnight on Thursday, according to a spokesperson for the group.

London- and South Africa-listed financial-services group Old Mutual is likely to unveil a far higher level of acceptances related to its R38-billion takeover offer for Swedish insurer Skandia than the current 64,3% after the tender offer closes at midnight on Thursday.

South Africa recorded average house-price growth of 21,9% in 2005, down from the rapid 32,2% average growth seen in 2004, according to the latest Absa house-price index, released on Wednesday. Banking group Absa is expecting house-price growth to slow further in 2006, to between 10% and 12% year-on-year.

There are strong signs indicating a prolonged period of high fixed investment in South African commercial property in the coming years, according to FNB property economist John Loos. Real non-residential property fixed-investment growth is forecast to accelerate to 9% in 2006.

Listed gaming and hotels group Peermont Global has agreed to acquire a controlling stake in the Tusk Casino Resorts and Hotels group for a total of between R440,3-million and R583-million in cash, the company announced on Wednesday. Peermont owns the Emperors Palace casino and hotel complex in Johannesburg, among others.

South Africa and United Kingdom-listed financial services group Old Mutual is "very comfortable" with the 62,5% level of acceptances received from Skandia shareholders for its R38-billion bid for the Swedish insurer, according to CEO Jim Sutcliffe. Sutcliffe said he also expects to receive more acceptances from Skandia shareholders, with the offer having been extended until January 12 2006.